Chapter

9
Top Performance through Empowerment, Teamwork, and Communication

Learning Goals
1

Describe why and how organizations empower employees. Distinguish among the five types of teams in the workplace. Identify the characteristics of an effective team and summarize the stages of team development. Relate cohesiveness and norms to effective team performance.

Describe the factors that cause conflict in teams and how to manage conflict. Explain the importance and process of effective communication. Compare the different types of communication. Explain external communication and how to manage a public crisis.

Empowering Employees
Empowerment - giving employees authority and responsibility to make decisions about their work without traditional managerial approval and control Sharing information and decision-making authority Keeping them informed about companys financial performance Giving them broad authority to make workplace decisions

Linking Rewards to Company Performance

Employee Stock Ownership Plans
13 million workers at 10,500 companies participate. Gives employees ownership, leading to potential profits as the value of their firm increases and motivating them to work smarter and harder.

Stock Options
Right to buy a specified amount of company stock at a given price within a given time period. Being offered more and more to employees at all different levels. 1/3 of all options go to the top five executives at a firm.

Employee Stock Options and Ownership

Teams
A team is a group of employees who are committed to a common purpose, approach, and set of performance goals. Mutually responsible and accountable for accomplishing objectives. Ability to work on teams often emphasized during the hiring process. Work teams are groups of people with complementary skills who are committed to a common purpose. Two-thirds of U.S. firms currently use work teams.

Five Species of Teams

Team Characteristics
Team Size
Can range widely, but most have fewer than 12 members. Ideal size is often six or seven members.

Team Level and Team Diversity

Team level - average level of ability, experience, personality, or any other factor on a team. Team diversity - variances or differences in ability, experience, personality, or any other factor on a team.

Stages of Team Development

Team Cohesiveness & Norms

Team cohesiveness is the extent to which team members feel attracted to the team and motivated to remain part of it. Increases when members interact frequently, share common attitudes and goals, and enjoy being together. Cohesive teams quickly achieve high levels of performance and consistently perform better. Team norms are the informal standards of conduct shared by team members that guide their behavior.
Can be positive or negative.

Team Conflict
Conflict - when one person or groups needs do not match those of another, and attempts may be made to block the opposing sides intentions or goals.
Cognitive conflict focuses on problem-related differences of opinion. Reconciling these differences strongly improves team performance. Affective conflict refers to the emotional reactions that can occur when disagreements become personal rather than professional. Team leaders should facilitate good communication so that teammates respect each other and work cooperatively.

Importance of Effective Communication

Communication is the meaningful exchange of information through messages. Managers spend 80 percent of their time in direct communication with others. Company recruiters rate effective communication as the most important skill theyre looking for in hiring new college graduates.

The Process of Communication

Cultural Context
Communication in low-context cultures tends to rely on explicit written and verbal messages.
U.S., Switzerland, Germany, Austria

Communication in high-context cultures depends not only on the message itself but also on the conditions that surround it, including nonverbal cues, past and present experiences, and personal relationships between the parties.
Japan, Latin America, India

Basic Forms of Communication

Listening
Cynical listening: Receiver of a message feels that the sender is trying to gain some advantage from the communication. Offensive listening: Receiver tries to catch the speaker in a mistake or contradiction. Polite listening: Receiver listens mechanically to be polite rather than to communicate. Active listening: Requires involvement with the information and empathy with the speakers situation; the basis for effective communication.

Formal Communication
Flows within the chain of command Downward communication Upward communication

Open and honest communication is key

Open Communication
With open communication, employees feel free to express opinions, offer suggestions, and even voice complaints. 7 Characteristics of Open Communication:
Employees are valued High level of trust exists Conflict is invited and resolved positively Creative dissent is welcomed Employee input is solicited Employees are well-informed Feedback is ongoing

Informal Communication
Informal communication is to carry messages outside formally authorized channels. The grapevine is an internal channel that passes information from unofficial sources.

Nonverbal Communication
Nonverbal communication transmits messages through actions and behaviors. Gestures, posture, eye contact, tone and volume of voice, and even clothing choices are all nonverbal actions that become communication cues. Have a far greater impact on communications than many people realize.

External Communication
External communication is a meaningful exchange of information to major audiences: customers, suppliers, firms, general public, government officials Every communication with customers should create goodwill.

Communication during crisis:

Respond to crisis quickly. Put top company management in front of the press. Stick to the facts. When you dont know, offer to find out. Never say no comment. Speak to your audience.